[ANALYST REPORT] Celltrion: Expect healthy 3Q16 share price momentum

Celltrion’s sales and profit should normalize from 2Q16. Looking at 2H16, we suggest that investors focus on: 1) the start of supply (from 3Q16) of Celltrion Healthcare’s Remsima to Pfizer; 2) expected approvals for Celtrion’s Rituxan and Herceptin biosimilars; 3) a planned IPO for Celltrion Healthcare; and 4) new disclosure rules for short-selling balances.2Q16 preview: Earnings normalizing; COGS-to-sales ratio and SG&A-to-sales ratio stabilizingCeltrion chairmanSeo Jung-jinWe expect Celltrion

July 1, 2016

Asia-Pacific central banks to invest in local currency bonds

[THE INVESTOR] Central banks of 11 Asia-Pacific nations will invest in bonds denominated in the currencies of concerned nations, Bank of Korea announced on July 1. According to SouthKorea’s central bank, the 11 central banks included in the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) agreed to invest in local currency bonds. Members of EMEAP include the central banks of South Korea, Australia, China and Japan.Until now, the EMEAP’s Asia Bond Fund invested in dollar-denominated

July 1, 2016

BOK likely to cut key rate to below 1% in 2016

[THE INVESTOR] Korea’s benchmark interest rate could be slashed to below 1 percent this year due to Britain’s decision to leave the European Union, Nomura Financial Investment said on July 1. Kwon Young-sun, an economist at the firm said that the Bank of Korea is likely to cut the key rate by 25 basis points twice within 2016 to 0.75 percent from current 1.25 percent. On June 9, the BOK took its key seven-day repo rate to 1.25 percent from a previous level of 1.5 percent, the first cut in 12 mon

July 1, 2016